I was in a rush this morning as I was due out on an early site visit for a client, but there were a couple of trades I wanted to make before I set off. I was already running late getting the kids up and ready for school etc, the classic family morning chaotic scenario but I wanted to make sure I remembered to place my trades, so...
Classic amateur mistake Number 1: Trading when you should be doing something else. If you can't commit 100% of your concentration whilst placing your trades then don't trade at all! You might miss the boat on 1 particular trade but there will be another 100 ships sailing later that you can hitch a ride on!
Classic amateur mistake Number 2: Rushing to place trades means you miss important things like a huge spread! One share I traded had a bloody huge spread which meant I was already £7 down the moment the trade went through. I couldn't believe it but I should have taken note of the spread before I placed the trade but instead I was putting my shoes on with one hand and eating cornflakes/trading with the other! DOH!
So there you have it, learn from my mistakes and don't replicate them yourselves. I'll let you know what trades went down in Wednesdays post. Tomorrow I am away on business and trust me I won't be trading this time!
Good luck out there, and beware of those huge spreads on certain shares!
Which account did you make those mistakes in? Hopefully not the Position Trading account ;-)
ReplyDelete[but we all do it]
A second question, about your two accounts:
The phrase "Pro Share Tips" alone suggests clever stock picking but no money- or risk- management.
In the "Pro Tips" account, are you simply buying and holding or are you using stop orders, position sizing, pyramiding and other money management techniques? In other words, are you using the Position Trading strategy in that account too, but merely with different stock selection criteria than I use?
Tony Loton, author or "Position Trading" (the book)
http://www.lotontech.com/positiontradingbook